Realty Income (O) Stock on December 7, 2025: Yield, New Deals, and Conflicting Valuations

Realty Income Corporation (NYSE: O) – better known as “The Monthly Dividend Company” – remains one of the most closely watched income stocks in the U.S. real estate market. With a global triple‑net lease portfolio of more than 15,500 properties across all 50 U.S. states, the U.K. and several European countries, it occupies a unique position as a large‑cap, dividend‑focused REIT (real estate investment trust). ^[1]

As of the latest trading data, O stock is changing hands around $58.48 per share, giving Realty Income a market capitalization of roughly $54 billion. ^[2] The company’s annualized dividend of about $3.23 per share translates into a forward yield in the 5.5%–5.7% range, depending on the price snapshot you use. ^[3]

On December 7, 2025, investors are digesting a cluster of fresh developments: a major preferred equity deal on the Las Vegas Strip, a new sterling‑denominated term loan, robust third‑quarter results, and a set of mixed – sometimes conflicting – analyst and valuation calls on O stock. Here’s a detailed, news‑style overview of where things stand today.

O Stock Today: Price, Yield and Headline Valuation

Realty Income’s share price has climbed about 10% in 2025 prior to this week, according to a recent Simply Wall St review of the stock. ^[4] That performance is respectable but not spectacular compared with some higher‑beta REITs and AI‑linked growth names that have led markets this year.

Using the company’s updated 2025 AFFO (Adjusted Funds From Operations) guidance of $4.25–$4.27 per share from its third‑quarter earnings release, O stock is trading at roughly 13.7x forward AFFO at current levels. ^[5] For a large, investment‑grade net‑lease REIT with long leases and high occupancy, that multiple sits in the middle of the historical range – not clearly distressed, but also not priced like a high‑growth tech stock.

Analyst price targets cluster just above the current share price:

MarketBeat reports an average 12‑month target of about $62.23 from 15 analysts, implying roughly 6.5% upside from the current $58.48 price, with targets ranging from $60 to $68. ^[6]
StockAnalysis shows a similar picture: a consensus “Hold” rating from 13 analysts, with an average target of $61.92 – about 5.9% potential upside, and a range of $54 to $68. ^[7]

Taken together, Wall Street’s base case is that O stock has modest upside over the next year, with most of the return likely coming from its high monthly dividend rather than aggressive price appreciation.

Fresh Company News: Las Vegas Preferred Deal, New Term Loan and Q3 2025 Results

$800 Million Preferred Equity Investment in CityCenter Las Vegas

On December 1, 2025, Realty Income announced a major $800 million perpetual preferred equity investment in the real estate of CityCenter in Las Vegas, which includes the ARIA Resort & Casino and Vdara Hotel & Spa. The assets are owned by funds affiliated with Blackstone Real Estate, with MGM Resorts continuing to operate the properties under an existing triple‑net lease. ^[8]

Key economic points from the deal:

The investment carries an initial unlevered rate of return of 7.4%, with capped annual escalators beginning in year five. ^[9]
A make‑whole provision ensures Realty Income achieves at least an 8.325% unlevered IRR on any redeemed preferred equity. ^[10]
Realty Income retains a right of first offer if Blackstone sells the common equity in the future. ^[11]

In conjunction with this transaction, management raised its 2025 investment volume outlook to over $6.0 billion, reinforcing the message that the company still sees attractive risk‑adjusted yields in large, structured deals despite macro uncertainty. ^[12]

Strategically, this is Realty Income’s second high‑profile Las Vegas partnership with Blackstone, following the Bellagio joint venture in 2023. It deepens the REIT’s exposure to experiential real estate – gaming, lodging and upscale retail – but in a senior capital position (preferred equity) rather than common equity, which can be attractive from a risk‑return standpoint.

£900 Million Sterling‑Denominated Term Loan

On November 18, 2025, Realty Income closed a £900 million unsecured sterling term loan maturing in January 2028, with an option to extend by 12 months. ^[13]

Highlights:

The loan is priced at 80 basis points over SONIA, reflecting the benefits of Realty Income’s A‑rated credit profile. ^[14]
Management simultaneously executed interest rate swaps that fix the effective rate at about 4.3% during the initial term. ^[15]
Proceeds are used to repay sterling borrowings on the company’s $4 billion multicurrency revolver, effectively pre‑funding the January 2026 term loan maturity that includes a £705 million tranche. ^[16]

This move extends Realty Income’s debt maturity profile, stabilizes funding costs in the U.K. and Europe, and signals that management is actively managing interest‑rate and refinancing risk at a time when many REITs are under scrutiny for their balance sheets.

Q3 2025: Solid AFFO and Higher Guidance

In its November 3, 2025 earnings release, Realty Income reported another quarter of steady growth: ^[17]

AFFO per share of $1.08 for Q3 2025
Total revenue of about $1.47 billion, up from roughly $1.33 billion a year earlier
Net income to common shareholders of around $315.8 million, or $0.35 per share
Approximately $1.4 billion of investments completed in the quarter at an initial cash yield of 7.7%
Net debt to annualized pro‑forma adjusted EBITDA at 5.4x, within a conservative REIT leverage range

The company also raised its full‑year 2025 guidance, updating:

AFFO per share to $4.25–$4.27
Investment volume guidance to roughly $5.5 billion, before later lifting the outlook above $6 billion after the CityCenter announcement. ^[18]

Portfolio metrics remain robust: Realty Income reported 98.7% occupancy across 15,542 properties, leased to 1,647 clients in 92 industries, with a weighted average lease term of about 8.9 years. ^[19]

Dividends: 665 Monthly Payments and Counting

Realty Income’s entire brand rests on its dividend – and it is still delivering.

On November 7, 2025, the company declared its 665th consecutive monthly dividend: $0.2695 per share, or $3.234 annualized, payable on December 15 to shareholders of record as of November 28. ^[20]

According to dividend data aggregators, Realty Income’s annual dividend of roughly $3.23 per share results in a current yield around 5.5%–5.6%, based on where the stock trades in early December. ^[21]

Other key dividend facts:

The company has increased its dividend for more than 30 consecutive years and is a member of the S&P 500 Dividend Aristocrats index. ^[22]
Management highlighted in the Q3 release that the annualized dividend of $3.234 represented about 74.7% of diluted AFFO per share for the quarter – a sustainable payout ratio for a net‑lease REIT. ^[23]
Long‑term, Realty Income has delivered compound dividend growth of roughly 4%+ per year since the mid‑1990s, while keeping the payout relatively conservative. ^[24]

Recent coverage in outlets like Yahoo Finance and Kiplinger continues to highlight Realty Income as a go‑to name for dependable income, emphasizing its relatively high yield compared with the S&P 500 (around 1.2%) and its rare monthly payout schedule. ^[25]

For income‑oriented investors, the story remains straightforward: O stock is about steady, frequent cash flow, not explosive capital gains.

New Analyst Calls: A Fresh Downgrade, but Mostly “Hold”

The latest ratings news around December 7, 2025 adds nuance to the bull case.

On December 6, research platform Wall Street Zen downgraded Realty Income from “Hold” to “Sell”. The same report notes that, across the firms it tracks, three analysts rate the stock a Buy and twelve rate it a Hold, with no broad consensus that it is a strong buy at current levels. ^[26]
Barclays recently raised its price target on Realty Income from $63 to $64 while maintaining an “Equal Weight” (neutral) rating. ^[27]
Other firms mentioned within the same coverage include Cantor Fitzgerald, which cut its target to about $60 and kept a neutral stance, and Royal Bank of Canada, which nudged its target to roughly $61 with an “Outperform” label. ^[28]

Overlaying these with the MarketBeat and StockAnalysis consensus targets described earlier, the big picture is:

Ratings are clustered around Hold/Neutral, with a few positive outliers and at least one explicit Sell call. ^[29]
The average 12‑month upside implied by price targets is only mid‑single‑digit, suggesting analysts see income, not explosive growth, as the main attraction.

Valuation: Undervalued, Fairly Valued – or Even Overvalued?

What makes O stock particularly interesting right now is that different valuation frameworks are telling different stories.

The Bullish “Discount to Fair Value” Camp

A recent Seeking Alpha analysis argues that Realty Income trades at about a 22% discount to its fair value, pointing to a forward dividend yield around 5.7% versus a real estate sector median closer to 4.8%, and highlighting the company’s A‑rated balance sheet and roughly $2.9 billion in liquidity as support for dividend safety and modest growth. ^[30]

The same piece projects AFFO per share growth of about 3.3% in 2026 and 2.8% in 2027, supported by ongoing acquisitions and European expansion – not high‑growth tech numbers, but respectable for a defensive income vehicle. ^[31]

Meanwhile, Simply Wall St’s DCF (discounted cash flow) model calculates an intrinsic value of roughly $97.70 per share, implying O is about 40% undervalued at today’s ~$58 price. ^[32]

The More Cautious Multiple‑Based View

Interestingly, the very same Simply Wall St article also shows that Realty Income trades on a price‑to‑earnings ratio near 55.7x, significantly higher than both its retail REIT peer group and the broader REIT universe, once you measure it on traditional earnings rather than cash‑flow metrics. Their “fair” PE multiple model suggests a ratio closer to 34.6x, which – on that metric alone – makes O look overvalued. ^[33]

Put simply:

Cash‑flow‑based models (AFFO, DCF) often show O as undervalued, especially when you factor in its long lease terms and relatively low risk profile.
Traditional earnings multiples can make it look expensive, partly because REIT accounting earnings are depressed by non‑cash depreciation.

This split in valuation frameworks helps explain why analyst ratings are concentrated around Hold: the stock is neither obviously cheap nor obviously expensive, depending on which lens you use.

Macro Backdrop: Recession Fears vs “Recession‑Resistant” Cash Flows

Realty Income’s appeal is closely tied to the macro environment.

A recent Nasdaq/Motley Fool article named Realty Income as one of “recession‑proof” stocks to watch in December, emphasizing its diversified net‑lease portfolio and essential‑service tenants as potential buffers if consumer spending weakens. ^[34]

At the same time, the macro commentary there is sobering: UBS estimates a 93% near‑term probability of recession, citing consumer strain despite AI‑driven boosts to corporate and data‑center investment. ^[35]

For Realty Income, the macro trade‑offs look like this:

Lower interest rates and falling bond yields generally support REIT valuations and make a 5.5%+ dividend yield more attractive.
Recession risk and tighter credit conditions can pressure some tenants, particularly in cyclical categories like discretionary retail and gaming, though Realty Income’s long leases and careful tenant selection historically mitigate this. ^[36]

Investors who see interest rates drifting lower and inflation normalizing may view O as a relatively safe way to lock in mid‑single‑digit income plus modest growth. Those who fear prolonged higher rates or a deep recession may prefer to stay on the sidelines, even with the current yield.

Strategic Growth Drivers: Scale, Europe, and Fee‑Based Capital

Beyond dividends, Realty Income is actively trying to evolve its growth model.

Scale and Diversification
The company’s portfolio now spans more than 15,500 properties with near‑99% occupancy, across 92 industries and multiple countries. ^[37] This makes Realty Income one of the largest triple‑net landlords in the world, able to write billion‑dollar checks like the CityCenter deal and still remain diversified.
European and International Expansion
Management has repeatedly highlighted Europe as a major growth engine. In Q3 2025, roughly $1.0 billion of acquisitions closed internationally, versus about $380 million domestically, underscoring how important non‑U.S. assets have become to the pipeline. ^[38]
Structured and Fee‑Based Capital
Realty Income is moving beyond traditional sale‑leaseback deals. A recent analysis on Seeking Alpha describes how the company is building a private capital management business, aiming to earn fee income by managing capital for partners alongside its own balance sheet. ^[39] The CityCenter preferred equity investment is an example of a more structured capital solution that could be replicated with other partners.
Balance Sheet Management
The new £900 million term loan and ongoing unsecured bond issuance show Realty Income leaning into its A‑rated credit to secure relatively attractive long‑term funding, while terming out maturities and reducing reliance on short‑term facilities. ^[40]

If these initiatives succeed, Realty Income could grow AFFO in the low‑to‑mid single digits annually, while maintaining or slightly increasing its dividend, even in a sluggish economy.

Risks and Bear‑Side Arguments

No REIT is risk‑free, and the bear case for O stock is straightforward.

Interest‑Rate and Yield Risk
If long‑term interest rates stay elevated or move higher again, investors may demand even higher yields from REITs, which would put downward pressure on O’s share price despite its steady cash flows. This is one reason some analysts are reluctant to call the stock cheap, even with a 5.5% yield. ^[41]
Sector and Geographic Exposure
While Realty Income is diversified, a meaningful slice of its portfolio is tied to retail and experiential properties, including Las Vegas resorts. In a severe downturn, those cash flows could come under pressure, even if leases are long term. European exposure also introduces currency and political risk. ^[42]
Limited Price Upside in Consensus Forecasts
With average analyst targets only 5–8% above today’s price, the near‑term total return case depends heavily on the dividend, not multiple expansion. If you want double‑digit capital gains, this might not be the right vehicle, especially in the short run. ^[43]
Competition from Higher‑Yielding REITs
Some mortgage REITs and more leveraged structures offer double‑digit yields, such as Annaly Capital’s ~12% yield highlighted in a recent comparison against Realty Income. ^[44] Investors hunting maximum income may find O’s mid‑single‑digit yield less compelling, even if it is much safer.

Bottom Line: How O Stock Looks on December 7, 2025

As of December 7, 2025, Realty Income sits at an interesting crossroads:

Income profile: A 5.5%+ yield, paid monthly, backed by a long record of dividend growth and a conservative payout of AFFO. ^[45]
Fundamentals: High occupancy, diversified tenants, growing international footprint and a strong investment‑grade balance sheet. ^[46]
Growth and deals: Billions in annual investments, including a new Las Vegas preferred equity deal with attractive terms and continued European expansion. ^[47]
Valuation: Some models see the stock as 20–40% undervalued, while others argue it’s rich on earnings multiples and only modestly cheap versus peers, helping explain the dominant Hold ratings. ^[48]

For investors, O stock today looks most suitable for those who:

Prioritize reliable, inflation‑resistant income over rapid capital gains
Have a multi‑year horizon and are comfortable owning a large, interest‑rate‑sensitive REIT
Want exposure to net‑lease real estate and structured deals without picking individual properties